Donít let government build an obsolete stadium

Written by Kurt St. Angelo

Continued from page 1

Major League Baseball once considered Indianapolis in an expansion. However, due to lack of planning, it would have cost over $40 million to convert RCA Dome to baseball. Later, MLB abandoned offering franchises to cities with indoor stadiums.

Game parking is inadequate and expensive around RCA Dome. Event parking more than a mile from Dome starts at $5. The Dome has no underground parking and very little parking revenue to share with an NFL team owner.

(To credit of Hudnut administration, RCA Dome is modest. In real terms, it cost about as much as Conseco Fieldhouse, which holds over 17,000. Other than lacking adequate profit-enhancing amenities to keep NFL franchises happy, Dome is a very functional stadium that is used 200-plus times per year, only 10 of which are for regularly-scheduled professional football games.)

Now Indianapolis Mayor Bart Peterson wants to relive glory days of Hudnut administration, but without that past administrationís modesty. If Peterson gets his way, taxpayers will spend over $500 million to build NFLís newest stadium, premiering in 2008.

In inflation-adjusted terms, thatís about three times real expense of ill-planned RCA Dome. The Colts have agreed to contribute only $100 million to project, a third of which is in form of a favorable NFL loan.

Indianapolis would be smarter to follow recent lead of Washington. Last week by a 7-to-6 vote, Washingtonís city council voted against deal struck between Major League Baseball and Mayor Anthony Williams, which required city to build a new $579 million stadium for former Montreal Expos. Mayor Williams now has until June to find private financing for other half of stadiumís costs.

Thatís kind of deal voters of Indianapolis should demand. Less government involvement in cityís next stadium means less risk for taxpayers, better planning and less pressure to raise taxes. We should resist temptation to let government build another obsolete stadium.

(Originally published December 21, 2004)

Attorney, screenwriter and Libertarian Party activist in Indianapolis

Can Indianapolis afford an NFL franchise?

Written by Kurt St. Angelo

Continued from page 1

The RCA Dome has 104 suites. The leagueís top franchise, Washington Redskins, offers 280. The difference in revenue between Coltsí and Redskinsí luxury suites likely exceeds $15 million annually. Total team revenues were $137 million and $227 million, respectively, in 2002.

Certainly it behooves Irsay to shop his team to city that gives him best deal. During past decade, 21 of leagueís 32 teams have received new or renovated stadiums. An average sweetheart deal is a $323-million stadium, paid 65 percent by taxpayers , that holds 69,200 spectators.

But here are $66,000 questions for Mr. Irsay: Even with an average $323-million stadium funded two-thirds by taxpayers, can Colts sell more suites at greater prices to bring team revenues above NFL median? Likewise, can central Indiana football market sustain more suites, box seats and higher prices to keep Colts in town?

Iíve been thinking of recommending that Libertarian Party buy naming rights to next Indianapolis Coltsí stadium, but now Iím having second thoughts.

At a recent sold-out home game, I was unable to sell two extra $45-seats that I had Ė at any price. There was no one besides ticket scalpers to give tickets. I swallowed $90 in losses, not to mention two grossly expensive $6 beers during game. (Hey, I was thirsty and now have my third plastic commemorative Colts cup!)

Before a new stadium becomes economically realistic in Indianapolis, demand for Colts tickets, box seats and luxury suites must exceed their supply. This burden of truth falls on Jim Irsay, and he must meet this before taxpayers make more concessions.

Funding a new stadium with $400-plus million of taxpayer debt (excluding interest) is to gamble on teamís ability to sell itself to more fans and at a higher premium.